True reason behind ICE bid for CBOT

I just read an interesting article where author mentioned the true reason (his interpretation of events) behind ICE bid for CBOT. I tend to see wisdom in his words. As everyone knows FIA (Futures Industry Association) is against CME/CBOT merger, since most of its governing members came from NY firms and are threatened by potential combined force of 2 Chicago exchanges. But the article goes deeper.

Apparently CME is trying to offer exchange traded products for such instrument as Credit Default Swaps which traded $26 trillion in 2006. The swaps trading is currently done by ancient ways of phone calls and faxes where most of the fees goes to the banks. CME/CBOT will open these markets and bring more transparency, and therefore bring down the fees (IMAGINE WHAT KIND OF FEES ARE EARNED OF $26 TRILLION). Morgan Stanley and Goldman are one the biggest pushers of ICE offer.

I think NYC is the sole reason behind the ICE bid. ICE states that it will headquarter in Chicago but you know most of its operations will be in NYC. NYC feels threatened by Chicago and they don't want to lose their monopoly. I mean the large NYC investment banks are backing ICE for a reason.

Does anyone know what happened to the Actuarial Exchange? I was approached a few years ago to invest and they were supposedly going to create an exchange where many desk traded instruments would migrate to this closed exchange for the big trading houses. I decided not to invest because I felt that the big houses had a vested interest in having as little transparency as possible.

I'm surprised too. NYC is pulling the strings, they don't want Chicago to control the derivatives market. ICE can say all they want about putting their headquarters in Chicago, but all their day-to-day activities will take play in Manhattan. The CBOT does all their clearing through the CME right now. Can you imagine the logistics of having to change everything over? Money isn't everything, the value is much deeper with the CME.